Pollution Exclusion Does Not Bar Coverage, Pennsylvania Federal Judge Determines

PITTSBURGH - An excess insurer owes coverage to its insured for claims arising out of a petroleum asphalt spill because under the applicable Maryland law, a pollution exclusion clause bars coverage only in cases of traditional environmental pollution, and petroleum asphalt is not listed as a pollutant, contaminant or hazardous substance under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C.S. § 9601, a Pennsylvania federal judge said Sept. 7 (The Travelers Indemnity Co. v. MTS Transport LLC, No. 11-01567, W.D. Pa.; 2012 U.S. Dist. LEXIS 127505).

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